Panama’s economy for more than 10 years, has had significant growth, the most outstanding in the Latin American country. Foreign direct investment, infrastructure, the privileged geographical position that the country has, and multiple visits of tourists, are just some of the factors that have contributed to this growth of long standing.
But this growth seems not to stay there. In its most recent report on Panama, the International Monetary Fund (IMF) highlights the growth of Panama’s economy in the last decade as the highest in Latin America, and expects to continue to have one of the highest rates in the region medium term, with low inflation, a stable financial system and a shrinking trade deficit.
Panama’s economy – Gogetit Highlights
- Factors such as increased transits through the Panama Canal, the service sector and investments in logistics, mining and energy, will drive growth of GDP in the medium term, benefiting Panama’s economy.
- For the first quarter of 2016, growth in Panama’s economy was 5.7%.
- IMF projections for this year regarding the economy in Panama, are similar to those of the Government of Panama (6%), the World Bank (6%) and the United Nations Economic Commission for Latin America and the Caribbean (6.2%).
Panama’s economy, according to the International Monetary Fund, will be driven in the medium term by the start of operations of the Panama Canal expansion and low fuel prices, which offset the slowdown in the global economy and the appreciation of the dollar, which makes exports lose competitiveness as a tourist destination.
Growth in Panama’s economy in 2014, got to reach 7.2%. For 2016, the first quarter shows a 5.7% growth, according to unofficial data from the Ministry of Economy and Finance.
The report published by the International Monetary Fund, was the result of a routine that makes this international organization member countries. In this report, Panama’s economy has an increase of about 6% for 2016 and medium-term projects.
Despite the recent scandal over a leak of documents from the firm Mossack-Fonseca (better known as “Panama Papers“) and the charge of money laundering made in May, the Office of Foreign Assets Control US the group and Abdul Waked and Nidal Waked entrepreneurs, the IMF urges greater efforts to enhance financial transparency, strengthen the fiscal framework and promote inclusive growth.
In addition, it should be recalled that Panama was removed from the gray list of the Financial Action Task Force (FATF), which identified them as a country with weaknesses in preventing money laundering.
Strengthening the integrity and financial transparency, will put Panama in a better position to face the FATF review of 2017, in which the effective implementation of the new legal framework will be evaluated.